India permits the manufacture of ethanol utilizing sugarcane juice and molasses

The Indian government has announced a significant change in its ethanol production policy, effective from the upcoming ethanol supply year starting on November 1. With this decision, sugar mills and distilleries will be able to produce ethanol without any quantitative restrictions.

This move comes after a restriction on sugar production in the current marketing year due to a decline in sugarcane supplies. The government aims to address concerns about sugarcane supplies and ensure the availability of ethanol and sugar in the domestic market.

Several Indian sugar mills, including E.I.D.-Parry, Balrampur Chini Mills, Shree Renuka, Bajaj Hindusthan, and Dwarikesh Sugar, have increased their ethanol production capacity in recent years. However, specific information about companies that have increased their ethanol production capacity and are active in India was not provided.

The government will periodically review sugar diversion to ethanol to ensure year-round availability of the sweetener in the domestic market. No new information about the government's aim to address concerns about sugarcane supplies was provided.

The decision to lift quantitative restrictions on ethanol production may have implications for the automotive industry and the fuel market in India. However, no new information about the potential implications of the government's policy on ethanol production for these sectors was provided.

India aims to increase the blending of ethanol into gasoline to 20% by the marketing year 2025/2026. The government has allowed the production of ethanol from various sources of sugar, including juice, syrup, and molasses, with no restrictions on volumes for the marketing years 2025/2026.

Motorists in India have been voicing complaints about the use of ethanol fuel. No new information about these complaints was provided. Indian automakers have expressed concerns that ethanol fuel negatively impacts mileage, but they consider it safe for use. No new information about the government's plans to address these concerns was provided.

The Ministry of Consumer Affairs, Food & Public Distribution made this announcement in a notification on Monday. The government has not provided any new information about its policy on periodically reviewing sugar diversion to ethanol.